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Financial Accounting

The impression one gains from the internal inconsistency of many of the arguments upon the which justification of conventional accounting, is made to rest is strongly reminiscent of the underlying philosophy of the rulers of Oceania in George Orwell’s Nineteen Eighty-Four. The distinctive feature of this philosophy is doublethink. Doublethink means the power of holding two contradictory beliefs in one’s mind simultaneously, and accepting both of them”. Two examples are “ Valuations are incorporated in balance sheets, but the balance sheet is not a valuation document” and “ Fixed assets should be carried at cost…in historical cost, unless such cost is no longer meaningful”,

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